• (714) 470-8600
    • mike@mikepatel.com

Mahesh Mike Patel

Anaheim Hills Real Estate

  • Menu
  • Search
    • Advanced Search
    • Map Search
    • Listing ID Search
    • Address Search
    • Browse by City
    • My Account
  • About
    • Meet Mike
    • Read Reviews
    • Watch Reviews
    • Marketing Plan
    • Luxury Homes
  • Buyers
    • Buying With Us
    • Hot Properties
    • Luxury Homes
    • Off Market Listings
    • Mortgage Calculator
    • My Listing Manager
    • Commercial
    • Residential Income
    • REO Properties and Foreclosure
    • Short Sale Properties
  • Sellers
    • Free Instant Home Value
    • Selling With Us
    • Marketing Plan
    • Sold Portfolio
    • FREE Home Valuation
    • Luxury Homes
    • Commercial
    • Residential Income
    • Short Sale Properties
    • REO Properties and Foreclosure
    • 12 Reasons Your Home Didn’t Sell
  • Communities
    • Anaheim
    • Anaheim Hills
    • Brea
    • Buena Park
    • Fullerton
    • Garden Grove
    • Orange
    • Placentia
    • Tustin
    • Tustin Ranch
    • Villa Park
    • Yorba Linda
  • Commercial
  • Income Properties
    • Residential Income
    • REO Properties and Foreclosure
    • Short Sale Properties
  • Youtube Channel
  • Blog
    • Events
  • Contact

Do I Really Need a 20% Down Payment to Buy a Home?

Do I Really Need a 20% Down Payment to Buy a Home? | Simplifying The Market

Is the idea of saving for a down payment holding you back from buying a home right now? You may be eager to take advantage of today’s low mortgage rates, but the thought of needing a large down payment might make you want to pump the brakes. Today, there’s still a common myth that you have to come up with 20% of the total sale price for your down payment. This means people who could buy a home may be putting their plans on hold because they don’t have that much saved yet. The reality is, whether you’re looking for your first home or you’ve purchased one before, you most likely don’t need to put 20% down. Here’s why.

According to Freddie Mac:

“The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”

If saving that much money sounds daunting, potential homebuyers might give up on the dream of homeownership before they even begin – but they don’t have to.

Data in the 2020 Profile of Home Buyers and Sellers from the National Association of Realtors (NAR) indicates that the median down payment actually hasn’t been over 20% since 2005, and even then, that was for repeat buyers, not first-time homebuyers. As the image below shows, today’s median down payment is clearly less than 20%.Do I Really Need a 20% Down Payment to Buy a Home? | Simplifying The Market

What does this mean for potential homebuyers?

As we can see, the median down payment was lowest for first-time buyers with the 2020 percentage coming in at 7%. If you’re a first-time buyer and putting down 7% still seems high, understand that there are programs that allow qualified buyers to purchase a home with a down payment as low as 3.5%. There are even options like VA loans and USDA loans with no down payment requirements for qualified applicants.

It’s important for potential homebuyers (whether they’re repeat or first-time buyers) to know they likely don’t need to put down 20% of the purchase price, but they do need to do their homework to understand the options available. Be sure to work with trusted professionals from the start to learn what you may qualify for in the homebuying process.

Bottom Line

Don’t let down payment myths keep you from hitting your homeownership goals. If you’re hoping to buy a home this year, let’s connect to review your options.

Posted in: News & Blog

Post navigation

« Want to Build Wealth? Buy a Home This Year.
Why Owning a Home Is a Powerful Financial Decision »

Search Properties

Get FREE Listing Manager

Login to Listing Manager

Featured Properties

1064 N Tustin Street $1,800,000

1064 N Tustin Street Orange, California

Beds Baths 2,666 Sq Ft Acres

1062 Irvine Boulevard $1,600,000

1062 Irvine Boulevard Tustin, California

Beds Baths 1,500 Sq Ft Acres

2444 Huntington Drive $1,150,000

2444 Huntington Drive Duarte, California

Beds Baths 1,582 Sq Ft Acres

Search for:
Search for:
Search for:

RSS MikePatel’s Blog

12 Reasons Your Home Didn‘t Sell

Fill out this form to get this information-filled booklet as a PDF download.

  • This field is for validation purposes and should be left unchanged.

From Our Clients…

Yvonne Y.

I can’t say enough good things about Mike Patel! He’s professional, honest, hard working and just an overall kind person. He knows residential real estate like the back of his hand, an incredible negotiator! If you’re in need of a local Realtor look no further.

Read More Reviews »

What’s Your Home Worth?

I am the premier agent to turn to when you are ready to list your property to sell quickly and at top dollar! I compare other properties in the local market to make sure we list it at the right asking price.

FREE Home Valuation

Mahesh Mike Patel

  • Call/Text: (714) 470-8600
  • mike@mikepatel.com
  • 8028 S Santa Ana Canyon Rd Anaheim Hills, CA 92808
Happy Client testimonial

© 2022 Mahesh Mike Patel, CA BRE# 01146880 | All Rights Reserved

Agent Reputation – Real Estate Website Design

Privacy Policy | DMCA | Sitemap